The Sydney suburbs dropping out of the million-dollar club
A dozen suburbs have dropped out of Sydney’s million-dollar house price club as the property market continues its steepest downturn in decades.
Roselands, Sutherland and Kellyville Ridge were among the suburbs, mostly 20 kilometres or more from the city centre, where the median house price dropped below $1 million last year.
Most areas to fall below the price threshold were in the city’s south and Canterbury Bankstown area, where some buyers are now able to afford more spacious options than first thought.
With house prices down 11.4 per cent since the market peak in mid-2017, about half of Sydney suburbs now have a median below $1 million, according to the latest Domain Group data.
While the Sydney property market is still out of reach for many, with a median of $1,062,600, the shrinking million dollar club could be welcome news for buyers, Domain research analyst Eliza Owen said.
“We’ve been reporting a $1 million median since 2015. I think buyers had a real acceptance of that million dollar mark,” said Ms Owen.
“[But] they might be more hopeful as more suburbs fall below a million dollar median sales price, however it’s still quite expensive.”
| Note: Medians were based on sales over the year to December. Suburbs with fewer than 50 sales were excluded. Source: Domain Group data. | |||
| Where median prices dropped below $1 million | |||
| Suburb | Median House Price – 2018 | Median House Price – 2017 | YoY Change |
| Glenwood | $976,000 | $1,020,000 | -4.30% |
| Padstow | $963,000 | $1,010,000 | -4.70% |
| Kellyville Ridge | $965,000 | $1,014,000 | -4.80% |
| Revesby | $980,000 | $1,040,000 | -5.80% |
| Riverwood | $983,000 | $1,050,000 | -6.40% |
| Panania | $959,000 | $1,029,875 | -6.90% |
| Jannali | $980,000 | $1,055,000 | -7.10% |
| Sutherland | $965,000 | $1,065,000 | -9.40% |
| Northmead | $940,000 | $1,048,500 | -10.30% |
| Winston Hills | $982,500 | $1,116,000 | -12.00% |
| Roselands | $950,500 | $1,085,000 | -12.40% |
| Engadine | $892,500 | $1,032,500 | -13.60% |
| Suburb | Median Unit Price – 2018 | Median Unit Price – 2017 | YoY Change |
| Forest Lodge | $999,000 | $1,000,000 | -0.10% |
| Haymarket | $936,750 | $1,062,000 | -11.80% |
| Mosman | $968,500 | $1,120,000 | -13.50% |
The research, which measured suburbs with more than 50 sales annually, also found only three neighbourhoods fell from the smaller $1 million apartment club.
Mosman units took the biggest hit, with the median falling more than $150,000 to $968,500. Units in Haymarket and Forest Lodge also dipped below the $1 million level.
“The higher end of the market tends to lead when it comes to price declines,” Ms Owen said. “Suburbs with higher values have had more significant declines, which have put them under the million dollar threshold.”
“[However] these suburbs haven’t drastically fallen in value and their price declines are generally in line with declines in the Sydney median, which fell about 10 per cent,” Ms Owen said.
More than 60 per cent of house hunters who searched for a Sydney property on Domain last month set their price limit at either $1 million or a lower point.
Among those benefiting from the cooling market is Winston Hills resident Alex Chau, who recently bought a three-bedroom house for $845,000 after relocating back to Sydney from Perth last year.
“There was a stark difference from when we left [near the start of the boom],” Mr Chau said, adding that it now feels more like a buyer’s market.
Mr Chau was drawn to Winston Hills — where the median dropped 12 per cent to $982,500 — for its affordability, schools and quiet, leafy streets.
“We heard that property prices in the area were a million dollars at the beginning of [2018] .. so they’ve come down quite a lot,” Mr Chau said. “The [timing] worked out really well for us.”
While prices in the suburb potentially have further to fall, he is not concerned as the family hope to make it their long-term home.
Selling agent Russell Judd of Walsh & Sullivan First National said he was seeing strong interest from upgraders in both Winston Hills and Northmead.
“We’re finding the $900,000 to $1.1 million price range is quite popular,” Mr Judd said. “It’s been surprisingly busy [in recent weeks].”
Mr Judd said buyers had been sitting back as the market corrected in 2018, but expected house hunters to return with new confidence this year as the market found its new balance.
PK Property director and buyer’s agent Peter Kelaher said that as prices dipped in the outer suburbs, first-time buyers and upgraders could afford detached houses instead of apartments.
“People are getting on with it and starting to put their toe in the water,” he added.
“The start of the year could be a bit rocky with two elections … but people are now saying to me, ‘I reckon there’s a bargain, I reckon there’s an opportunity’.”
Further price falls could be in store, with some economists recently lowering their outlooks for the city. AMP Capital now predicts a 25 per cent peak to trough fall for Sydney prices, while Credit Suisse is tipping a similar fall.
